Koda (BJZ) H1 2024 earnings summary

Executive summary

• Revenue fell 19.9% YoY to US$20.0m as furniture demand weakened; gross profit fell 30.1% to US$5.1m and the period ended in a US$2.36m net loss, versus US$0.27m profit in 1H2023.

• Lower sales and gross margin, higher administrative expenses, and one-off charges contributed to the loss; operating cash flow remained positive at US$0.26m.

Financial highlights

• Revenue was US$19.959m, down 19.9% YoY; cost of sales fell 15.7% to US$14.859m.

• Gross profit was US$5.100m, down 30.1%; gross margin was 25.6%, down 3.7 percentage points YoY.

• Loss before tax was US$2.211m versus profit before tax of US$0.629m; net loss was US$2.359m versus net profit of US$0.269m.

• Selling and distribution costs fell 11.6% to US$2.846m; administrative expenses rose 10.6% to US$4.144m, and other expenses increased to US$0.562m.

• Basic and diluted EPS were both a loss of 2.82 US cents, versus earnings of 0.35 US cents in 1H2023.

Outlook and guidance

• FY2024 strategy was adjusted for a slower, more cautious recovery amid persistent market uncertainty; no formal forecast had previously been disclosed.

• Export-client demand enquiries showed hopeful signs of retailers progressively clearing excess inventories, while the distribution network expanded in India and Europe.

• Recovery depends on inventory replenishment and easing inflationary pressure; the pace of orders remains uncertain.